Uttar Pradesh government Tuesday allowed the legislators to withdraw Rs.20 lakh from their development fund to purchase a car, a move that has triggered a political storm in the state with the Congress, BJP and BSP protesting against it. If all the 402 legislators in the state assembly purchase cars from their local area development (LAD) funds, it will cost the exchequer by Rs.80.60 crore. The announcement was made by Chief Minister Akhilesh Yadav, was met with stiff protest by opposition benches as MLAs from the Bharatiya Janata Party (BJP), Congress and the Bahujan Samaj Party (BSP) opposed the move saying they found the whole decision very strange. According to established guidelines for the use of MLA funds, the fund cannot be used for personal use.

Uttar Pradesh has 403 MLAs; the government’s largesse will cost the state exchequer over Rs 80 crore. The Chief Minister also increased the MLA fund, better known as Vidhayak Nidhi, entitlement from the current 1.25 crore to Rs 1.5 crore. "Despite a financial crisis, the SP government has fulfilled all the promises it made in the party manifesto in the budget. We entitle MLAs to purchase vehicles upto Rs 20 lakh from their local area development fund", Chief Minister Akhilesh Yadav announced in the state Assembly. He said that value of the vehicle will be depreciated per year and after the end of five years the MLAs could deposit the depreciated amount and hand over their vehicle. "This will help MLAs, who did not have money to buy the vehicle", Akhilesh said adding that the government would not give any amount for maintenance of the vehicles.